0001|            HOUSE TRANSPORTATION COMMITTEE SUBSTITUTE FOR
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0002|                            HOUSE BILL 477
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0003|     43rd legislature - STATE OF NEW MEXICO - second session, 1998
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0004|                                   
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0005|     
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0006|     
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0007|                                   
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0008|                                   
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0009|                                   
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0010|     
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0011|                                AN ACT
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0012|     RELATING TO THE FINANCING OF HIGHWAY PROJECTS; INCREASING THE
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0013|     BONDING AUTHORITY OF THE STATE HIGHWAY COMMISSION FOR CERTAIN
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0014|     HIGHWAY PROJECTS; AUTHORIZING THE PLEDGING OF TAXES, FEES AND
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0015|     FEDERAL FUNDS IN THE STATE ROAD FUND TO THE PAYMENT OF BONDS;
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0016|     AMENDING A SECTION OF THE NMSA 1978. 
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0017|     
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0018|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0019|          Section 1.  Section 67-3-59.1 NMSA 1978 (being Laws 1989,
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0020|     Chapter 157, Section 1, as amended) is amended to read:
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0021|          "67-3-59.1.  STATE HIGHWAY DEBENTURES--ISSUANCE--LIMITS--
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0022|     APPROVAL--COUPONS.--
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0023|               A.  In order to provide funds to finance state
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0024|     highway projects, including state highway projects that are
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0025|     required for the waste isolation pilot project and are
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<center>- 1 -</center>0001|     eligible for federal reimbursement or payment as authorized by
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0002|     federal legislation, the state highway commission is
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0003|     authorized, subject to the limitations of this section, to
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0004|     issue bonds from time to time, payable from federal funds not
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0005|     otherwise obligated that are paid into the state road fund,
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0006|     the proceeds of the collection of [gasoline excise] taxes and
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0007|     [motor vehicle registration] fees that are required by law to
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0008|     be paid into the state road fund and not otherwise pledged
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0009|     solely to the payment of outstanding bonds and debentures.
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0010|               B.  Except as provided in Subsections C and D of
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0011|     this section, the total aggregate outstanding principal amount
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0012|     of bonds issued from time to time pursuant to this section,
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0013|     secured by or payable from [the gasoline excise taxes and
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0014|     motor vehicle registration fees] federal funds not otherwise
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0015|     obligated that are paid into the state road fund and the
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0016|     proceeds from the collection of taxes and fees required by law
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0017|     to be paid into the state road fund, shall not, without
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0018|     additional authorization of the state legislature, exceed one
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0019|     hundred fifty million dollars ($150,000,000) at any given
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0020|     time, subject to the following provisions:
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0021|                    (1)  the total aggregate outstanding principal
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0022|     amount of bonds issued for state highway projects that are
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0023|     required for the waste isolation pilot project and are
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0024|     eligible for federal reimbursement or payment as authorized by
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0025|     federal legislation shall not exceed one hundred million
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<center>- 2 -</center>0001|     dollars ($100,000,000); and
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0002|                    (2)  the total aggregate outstanding principal
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0003|     amount of bonds issued for state highway projects other than
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0004|     state highway projects that are required for the waste isolation
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0005|     pilot project and are eligible for federal reimbursement or
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0006|     payment as authorized by federal legislation shall not exceed
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0007|     fifty million dollars ($50,000,000).
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0008|               C.  Upon specific authorization and appropriation by
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0009|     the legislature, and subject to the limitations of Subsection D
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0010|     of this section, an additional amount of bonds may be issued
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0011|     pursuant to this section for state highway projects, to be
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0012|     secured by or payable from taxes or fees required by law to be
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0013|     paid into the state road fund and federal funds not otherwise
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0014|     obligated that are paid into the state road fund, as follows:
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0015|                    (1)  an aggregate outstanding principal amount
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0016|     of bonds, not to exceed six hundred twenty-four million dollars
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0017|     ($624,000,000), for major highway infrastructure projects for
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0018|     which the state highway and transportation department has, prior
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0019|     to January 1, 1998, submitted or initiated the process of
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0020|     submitting a plan to the federal highway administration for
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0021|     innovative financing pursuant to 23 USCA Sections 122 and 307;
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0022|                    (2)  an aggregate outstanding principal amount
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0023|     of bonds, not to exceed one hundred million dollars
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0024|     ($100,000,000), for state highway projects that are required for
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0025|     the waste isolation pilot project and are eligible for federal
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<center>- 3 -</center>0001|     reimbursement; and
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0002|                    (3)  an aggregate outstanding principal amount
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0003|     of bonds, not to exceed four hundred million dollars
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0004|     ($400,000,000), for other state highway projects.
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0005|               D.  The total amount of bonds that may be issued by
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0006|     the state highway commission for state highway projects pursuant
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0007|     to Subsection C of this section shall not exceed a total
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0008|     aggregate outstanding principal amount of:
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0009|                    (1)  three hundred million dollars
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0010|     ($300,000,000) prior to July 1, 1999;
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0011|                    (2)  six hundred million dollars ($600,000,000)
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0012|     from July 1, 1999 through June 30, 2000;
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0013|                    (3)  nine hundred million dollars ($900,000,000)
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0014|     from July 1, 2000 through June 30, 2001; and
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0015|                    (4)  one billion one hundred twenty-four million
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0016|     dollars ($1,124,000,000) after June 30, 2001.
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0017|               [C.] E.  The state highway commission may issue bonds
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0018|     to refund other bonds issued pursuant to this section by exchange
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0019|     or current or advance refunding.
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0020|               [D.] F.  Each series of bonds shall have a maturity of
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0021|     no more than twenty-five years from the date of issuance.  The
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0022|     state highway commission shall determine all other terms,
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0023|     covenants and conditions of the bonds; provided that the bonds
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0024|     shall not be issued pursuant to this section unless the state
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0025|     board of finance approves the issuance of the bonds and the
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<center>- 4 -</center>0001|     principal amount of and interest rate or maximum net effective
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0002|     interest rate on the bonds.
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0003|               [E.] G.  The bonds shall be executed with the manual
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0004|     or facsimile [signatures] signature of the chairman of the state
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0005|     highway commission, countersigned by the state treasurer and
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0006|     attested to by the secretary of the state highway commission,
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0007|     with the seal of the state highway commission imprinted or
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0008|     otherwise affixed to the bonds.
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0009|               [F.] H.  Proceeds of the bonds may be used to pay
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0010|     expenses incurred in the preparation, issuance and sale of the
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0011|     bonds and, together with the earnings on the proceeds of the
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0012|     bonds, may be used to pay rebate, penalty, interest and other
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0013|     obligations relating to the bonds and the proceeds of the bonds
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0014|     under the Internal Revenue Code of 1986, as amended.
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0015|               [G.] I.  The bonds may be sold at a public or
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0016|     [private] negotiated sale at, above or below par or through the
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0017|     New Mexico finance authority.  Any negotiated sale shall be made
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0018|     with one or more investment banker whose services are obtained
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0019|     through a competitive proposal process.  For any sale, the state
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0020|     highway commission or the New Mexico finance authority shall also
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0021|     procure the services of any financial advisor or bond counsel
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0022|     through a competitive proposal process.  If sold at public sale,
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0023|     a notice of the time and place of sale shall be published in a
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0024|     newspaper of general circulation in the state, and in any other
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0025|     newspaper determined in the resolution authorizing the issuance
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<center>- 5 -</center>0001|     of the bonds, once each week for two consecutive weeks prior to
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0002|     the date of sale.  The bonds may be purchased by the state
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0003|     treasurer or state investment officer.
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0004|               [H.] J.  This section is full authority for the
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0005|     issuance and sale of the bonds, and the bonds shall not be
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0006|     invalid for any irregularity or defect in the proceedings for
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0007|     their issuance and sale and shall be incontestable in the hands
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0008|     of bona fide purchasers or holders of the bond for value.
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0009|               [I.] K.  The bonds shall be legal investments for any
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0010|     person or board charged with the investment of public funds and
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0011|     may be accepted as security for any deposit of public money and,
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0012|     with the interest thereon, are exempt from taxation by the state
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0013|     and any political subdivision or agency of the state.
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0014|               L.  Any law authorizing the imposition or distribution
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0015|     of taxes or fees paid into the state road fund or that affects
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0016|     those taxes and fees shall not be amended or repealed or
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0017|     otherwise directly or indirectly modified so as to impair any
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0018|     outstanding bonds secured by a pledge of revenues from those
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0019|     taxes and fees paid into the state road fund, unless the bonds
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0020|     have been discharged in full or provisions have been made for a
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0021|     full discharge.  In addition, while any bonds issued by the state
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0022|     highway commission pursuant to the provisions of this section
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0023|     remain outstanding, the powers or duties of the commission shall
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0024|     not be diminished or impaired in any manner that will affect
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0025|     adversely the interests and rights of the holder of such bonds.
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<center>- 6 -</center>0001|               M.  Bonds issued pursuant to this section shall be
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0002|     paid solely from federal funds not otherwise obligated and taxes
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0003|     and fees deposited into the state road fund and shall not
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0004|     constitute a general obligation of the state."
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0005|                               
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